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Asidera Company has analyzed the costs of producing and selling 5,000 units of its only product to be as follows: Direct Materials 60,000 Direct Labor
Asidera Company has analyzed the costs of producing and selling 5,000 units of its only product to be as follows:
Direct Materials | 60,000 |
Direct Labor | 40,000 |
Variable Factory Overhead | 20,000 |
Fixed Factory Overhead | 30,000 |
Variable Marketing & Admin Expenses | 10,000 |
Fixed Marketing & Admin Expenses | 15,000 |
Required:
- Compute the number of units needed to breakeven at a per unit sales price of Php 38.50.
- Determine the number of units that must be sold to produce an Php 18,000 profit, at a Php 40 per unit sales price.
- Determine the price Formanes must charge at a Php 5,000 unit sales level, to produce a profit equal to 20% of sales.
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